Every week we comb through the news to find employment trends affecting the hospitality industry so you don’t have to. This week’s Hospitality in the News topic: hiring expenses.
Hiring Expenses: The Cost of Doing Businesses (again and again and…..)
In the first installment of Hospitality in the News, we’re looking at hiring expenses for hourly employees and a possible solution for cutting down on spend.
According to an article in Upserve by Theresa Navarra, “…on average, the cost of hiring an hourly employee (such as a restaurant employee) can be as much as $3,500. For your [restaurant] industry, that’s an investment that walks out the door nearly 50% of the time.” When calculating hiring cost, it’s important to consider not only the physical costs, but your time and your staffs time. The average cost and retention rates mean to make one hire, you might be spending over $7,000. Not only that, but the time spent on recruiting, interviewing, and training ads up.
Because finding and retaining labor has traditionally been a challenge in the hospitality industry, many businesses are suffering and looking for a better process. At LGC, we offer a solution called Crew Perm created for the restaurant industry to fill hourly positions in the front and back of house. Not only can you save time because we handle all the recruiting and initial communication, but you’ll save money; Our Crew Perm fee caps significantly below $3,500 – and you’ll only pay when you’ve hired one of our candidates.
Let’s break this down. Using the traditional model, meeting two candidates will cost on average $7,000 for advertising, recruiting, and interviewing. Plus the countless hours used for administrative tasks. Using LGC’s Crew Perm, you’ll meet as many candidates as necessary, spend nothing until you decide to hire someone, and the administrative activities such as comparing candidates is left to our dedicated perm team. That’s several thousands of dollars and time saved.
If you’re looking to grow your team, high hiring expenses can slow you down. Save yourself money and energy by contacting the LGC Crew Perm team today. Be sure to check back with us next week for the second installment of Hospitality in the News.
Read the full article from Upserve here.